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The Development Bank of Southern Africa (DBSA), supported by the Climate Policy Initiative (CPI) and Promethium Carbon, has designed two financial instruments—a carbon credit-backed bond and a carbon repo facility—to address the supply-demand imbalance and liquidity challenges in South Africa's voluntary carbon market (VCM). These instruments aim to transform carbon credits into investable assets to mobilize private capital for climate mitigation projects.

The Uganda Development Bank (UDB) has designed a Currency Risk-Sharing Facility (CRSF) to scale up local-currency climate lending through its Climate Finance Facility (CFF). Developed via the FiCS Innovation Lab with technical support from the Climate Policy Initiative, the University of Leeds, and City St. George’s University of London, the CRSF aims to reduce foreign exchange (FX) exposure for UDB when borrowing in hard currencies (USD/EUR) and on-lending in Ugandan shillings (UGX). The instrument employs a layered risk-sharing approach, combining partial hedging with a tail-risk FX guarantee to protect against severe UGX depreciation while remaining more affordable than full hedging.

The Financing Steel Decarbonization (FSD) instrument is a proposed mechanism designed to accelerate the adoption of low-carbon technologies (LCTs) in the steel sector, specifically targeting India. It combines a blended debt fund (SDF) to provide patient capital with a service company (SDI) that offers technical assistance and implementation support to de-risk projects.

The Green Affordable Housing Finance instrument, proposed by Reall and analyzed by the Climate Policy Initiative, is a two-pronged financial mechanism designed to catalyze the construction and ownership of green affordable homes. It combines an Enabling Environment Facility (EEF) for technical assistance and direct construction finance with a Guarantee Facility that de-risks construction and mortgage loans for local financial institutions. The instrument will be piloted in Kenya in 2023, targeting the gap in sustainable housing for low- and informal-income households, before scaling to Nigeria, Uganda, India, and Pakistan.

The Green Guarantee Company (GGC) is a specialist guarantor designed to help public and private sector borrowers in emerging and frontier markets access long-term hard currency debt from global institutional investors for climate adaptation and mitigation projects. Managed by the Development Guarantee Group (DGG), the GGC provides full guarantees for bonds and loans of 5-20 years, aligned with the Climate Bond Standard (CBS), to mitigate sovereign and currency risks. The instrument includes a Technical Assistance (TA) facility to build issuer capabilities and market readiness. The GGC aims to catalyze approximately USD 10 billion in commercial term debt over its first decade, targeting sectors such as energy, transport, water, buildings, and waste, with an initial pilot phase in South Africa.

The Guarantee Fund for Biogas (GFB) is a proposed financial instrument designed to unlock public and private credit for independent biogas project developers in Brazil by providing construction-phase loan guarantees. By acting as a CVM-compliant fixed-income fund investing in treasury bills, the GFB addresses the lack of collateral that prevents smaller developers from accessing existing credit lines, aiming to scale Brazil's biogas capacity and reduce greenhouse gas emissions.

The Loans4SME Lab Instrument Analysis describes a proposed technology-driven peer-to-peer (P2P) lending platform designed to provide debt financing to small and medium enterprises (SMEs) in India for renewable energy and energy efficiency projects. The platform aims to bypass traditional banking barriers—such as strict collateral requirements and long sanction times—by connecting SMEs with high net worth individuals, family offices, and corporate treasuries using a proprietary credit scoring algorithm.

The BDMG Regenerative Agriculture Fund is a financial instrument designed by the Development Bank of Minas Gerais (BDMG) to support farmers in Minas Gerais, Brazil, in transitioning to regenerative agriculture (RA). Developed through the FiCS Innovation Lab with technical support from the Climate Policy Initiative (CPI) and other partners, the fund addresses barriers such as high risk perception, lack of technical knowledge, and limited access to affordable credit. The instrument employs a tri-partite structure combining credit guarantees, technical assistance, and a production support fund to mitigate the financial and productivity risks associated with the transition to RA.